If a negotiable instrument is made, drawn, accepted or endorsed outside Pakistan but in accordance with law of Pakistan, the circumstance that any agreement evidenced by such instrument is invalid according to law of country wherein it was entered into does not invalidate any subsequent acceptance or endorsement made thereon within Pakistan.

Where there is no provision to contrary in the contract, legality and validity of the instrument or of its acceptance or negotiation is governed by law of the place where instrument was made, drawn, accepted or negotiated. Law of place where instrument is payable determines liability of the parties, duties of holder with respect to presentment for acceptance or payment, date of maturity of instrument, what constitutes dishonour, all questions relating to payment and satisfaction including the currency and rate of exchange at which instrument is to be paid.

Also, the law of any foreign country regarding promissory notes, bills of exchange and cheques is presumed to be same as that of Pakistan unless and until contrary is proved.